Duke Energy Florida starts post-hurricane repairs

ST. PETERSBURG, Fla. - Duke Energy (NYSE:DUK) Florida has announced the commencement of power restoration efforts following the widespread damage caused by Hurricane Milton. The company reported that as of this morning, nearly 350,000 outages have been addressed, with over 850,000 still pending. Duke Energy is also set to release estimated restoration times for all affected customers later today.

The hurricane has inflicted significant damage on the infrastructure, with Duke Energy Florida's storm director, Todd Fountain, noting the severity of the impact, including downed trees and corrosion from storm surge. Despite these challenges, the company has mobilized a large-scale response, with 16,000 personnel working tirelessly, including overnight shifts, to restore electricity.

Crews are currently stationed at strategically placed base camps throughout the hardest-hit regions, including Bexley Properties, Brooksville-Tampa Bay Regional Airport, and Tropicana Field, among others. Duke Energy Florida emphasizes the importance of safety for customers using generators, advising them to operate generators outside, avoid connecting them directly to home wiring systems, and to be cautious of utility crews working in the vicinity.

Customers have been provided with multiple channels to report outages, including the Duke Energy website, mobile app, text messaging, and an automated phone system. The company also advises customers with property damage to their electrical equipment to seek local authority guidance and necessary inspections after repairs.

Duke Energy Florida, a subsidiary of Duke Energy, serves approximately 2 million customers across Florida. The parent company, Duke Energy, is actively pursuing a clean energy transition with goals to achieve net-zero methane and carbon emissions from its operations by 2030 and 2050, respectively.

This effort to restore power and the subsequent updates are based on a press release statement from Duke Energy. The latest information on power outages can be accessed through Duke Energy's Outage Map or by signing up for Outage Alerts.

In other recent news, Duke Energy announced its quarterly dividends for common and preferred stock, set at $1.045 and $359.375 per share, respectively. This move continues the company's 98-year streak of paying cash dividends on its common stock. Additionally, the company has successfully restored power to over 2 million customers in the Carolinas following Hurricane Helene. BMO Capital maintained its Outperform rating on Duke Energy, adjusting its third-quarter earnings estimate to $1.68, down from last year's $1.94, and revised its fourth-quarter earnings estimate upward to $1.73. The company also secured a $57 million grant from the U.S. Department of Energy for the reconstruction of a key power line in North Carolina, expected to create around 550 jobs and improve grid reliability. Edward Jones reiterated its Buy rating on Duke Energy, citing the company's above-average dividend yield and substantial capital investment plans. Despite these developments, Mizuho Securities maintained a neutral stance due to concerns over industrial load forecasts and potential policy changes. These are the recent developments for Duke Energy.

InvestingPro Insights

As Duke Energy Florida tackles the aftermath of Hurricane Milton, it's worth examining the financial health of its parent company, Duke Energy (DUK). According to InvestingPro data, Duke Energy boasts a substantial market capitalization of $87.35 billion, underscoring its position as a major player in the utility sector.

The company's financial resilience is evident in its consistent dividend payments. An InvestingPro Tip reveals that Duke Energy has maintained dividend payments for an impressive 54 consecutive years, with 17 years of consecutive dividend increases. This track record of reliable dividends, coupled with a current dividend yield of 3.7%, may provide some reassurance to investors during challenging times such as natural disasters.

Duke Energy's revenue growth of 3.47% over the last twelve months, along with a robust EBITDA of $14.1 billion, suggests the company has the financial strength to manage large-scale operations and unexpected events like Hurricane Milton. The company's ability to generate substantial cash flow is crucial for funding extensive power restoration efforts and maintaining its infrastructure.

It's worth noting that Duke Energy operates with a significant debt burden, as highlighted by another InvestingPro Tip. This factor may influence the company's financial flexibility in responding to major events like hurricanes. However, the company's profitability over the last twelve months and analysts' predictions of continued profitability this year indicate its capacity to manage its debt obligations while investing in recovery efforts.

For investors seeking a deeper understanding of Duke Energy's financial position and future prospects, InvestingPro offers additional insights with over 10 more tips available for this stock.

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